Pakistan’s performance in meeting international commitments in the fight against terror financing will be reviewed by the Financial Action Task Force (FATF) at its meeting in Beijing during June 21-26, according to a media report on Tuesday.
In February, the multilateral watchdog warned Pakistan it faced the possibility of being added to the “black list” and face greater scrutiny of all transactions in its financial system if it fails to fully implement an action plan to counter terror financing and money laundering by June.
At the time, the FATF also said Pakistan had “largely addressed” only 14 of the 27 items in the action plan, and made “varying levels of progress” on the rest of the items.
An unnamed senior government official was quoted by Dawn newspaper as saying Pakistan’s performance will be reviewed at joint working group meetings of the FATF and Eurasian Group (EAG) in Beijing in June, and this assessment would will to an announcement in October on whether Pakistan should be moved out of the “grey list”.
Pakistan was placed in the grey list in June 2018 following a push by India that was supported by the US, the UK and key European countries such as France and Germany.
The Dawn cited other officials as saying that Pakistan had put in place a broad-based strategy for necessary actions to complete outstanding commitments with the FATF in February and is “actively making progress” on these matters.
Pakistan has to comply with the 13 remaining items in the action plan that cover eight key categories. It has to demonstrate that relevant authorities are cooperating to identify and take enforcement action against illegal money or value transfer services and also prove the implementation of cross-border currency controls, the report said.
It also has to demonstrate that law enforcement agencies are identifying and investigating the widest range of terror financing activity and that such investigations and prosecutions target designated individuals and entities, the report added.
Outstanding action areas also include effective implementation of targeted financial sanctions (supported by a comprehensive legal obligation) against all terrorists designated under UN Security Council resolutions 1267 and 1373, including preventing the raising and moving of funds, identifying and freezing assets, and prohibiting access to funds and financial services.
Pakistan will also have to show it is acting against violations of the UN sanctions by depriving sanctioned terrorists of their resources.